CANDIDO FRANCISCO, petitioner,

vs.
THE COURT OF APPEALS, ONOFRE ESPIRITU, POTENCIANA ESPIRITU,
FELIX ESPIRITU, RITA ESPIRITU, CASIMIRO ESPIRITU, and HEIRS OF
DEOGRACIAS ESPIRITU, et al., respondents.

G.R. No. L-30162 August 31, 1987

Shiela C. Alemania

FACTS:
Nicolasa Resurreccion was the owner in fee simple of the three (3) parcels
of land in question, located at Taytay, Rizal, covered by Transfer Certificate of
Title No. 90-45 in her name. The parcels are inter alia described in the title as
follows: Lot No. 1, containing an area of 54,321 square meters; Lot No. 3, with
an area of 86 square meters; and Lot No. 9, with an area of 21 square meters,
more or less.

Three (3) years later, she executed another deed of sale dated August 16,
1928, this time conveying all the three (3) parcels of land covered by her title,
TCT No. 9045, in favor of a certain Felisa Afable. The sale included, not only
Lot No. 1, described in the title as having an area of 54,321 square meters but
also Lots Numbered 3 and 9 already sold to Agustin Esguerra, immediate
predecessor of Candido Francisco’s parents. Felisa Afable registered the sale
under the Torrens Act and obtained title in her own name, numbered 14256. 3

Then, thirty-one (31) years afterwards, or on September 22, 1959, Felisa

Afable sold the property to private respondents Casimiro Espiritu, Onofre
Espiritu, Potenciana Espiritu or the Espiritus and obtained a Torrens title in
their names, numbered 70517.

Shortly after the sale, the Espiritus asked Candido Francisco to vacate
lots Numbered 3 and 9, which the latter was occupying and on which was in
fact standing a house that he had constructed but Candido refused. The
Espiritus thereupon sued him for recovery of title and possession in the Court
of First Instance of Rizal.

ISSUE:
Whether or not the Espiritus are buyers in good faith

RULING:
No. The facts showed that Candido Francisco and Casimiro Espiritu have
known each other for a long time, that during Espiritu’s purchase of the lots,
he was aware that Francisco’s house was built in one of the smaller lots
covered in the sale.
 The buyer who could not have failed to know or discover that the land
sold to him was in the adverse possession of another, is a buyer in bad faith,
such knowledge being equivalent to registration.